Clifford Chance

Clifford Chance response to UK HMT consultation - Supporting the wind-down of critical benchmarks

25 March 2021

On 15 March 2021, Clifford Chance responded to HM Treasury's consultation on additional legal protections for parties affected by the wind-down of a critical benchmark, such as LIBOR. The February 2021 consultation sought feedback on the impact of the exercise of proposed powers under the UK Financial Services Bill where a benchmark is designated as an Article 23A benchmark and may be subject to a change in methodology under Article 23D. The consultation requested views on the risk of contractual uncertainty or disputes under legacy contracts and whether a supplementary legal ‘safe harbour’ would be beneficial to mitigate risks.

In its response, Clifford Chance considers the impact on bond markets, securitisation markets, loan markets, derivatives and asset finance.

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